While we here in India are drooling over Turkish rugs, Chinese lanterns, Italian shoes and French couture, the world is going gaga over authentic Indian handicrafts, apparels, jewellery and decor furniture. Otherwise how would you explain that over 148,654 items by Indian brands, sellers and artists like The Home Centric, Raregemstone, Anek Designs, Everthing Indian, and Indian Route are listed on Etsy and doing brilliantly on other market places as well?
Anek Design’s product featured on Etsy!
Yes, you heard it right. Take a quick look at eBay and Etsy, and you would find many India based sellers that cater exclusively to International customers and ship products that scream Indianess, by making optimum using of the ecommerce channel. You may wonder why.
Here’s why.
Demand for ‘Made in India’ Abroad and Role of Ecommerce in Paving a Way
India was and still is a mystical land for the rest of the world. Thankfully the image of it being a country of snake charmers, people travelling on elephants and flying carpets got crushed over the years. But the cultural & traditional aspect of our country still intrigues many. We have a rich heritage and luxury is in our closet, though we might not be aware of it. Be it hand-woven fabrics, golden zari sarees, intricate jewellery, or artwork, they all are distinctive and reflect great workmanship. This is the primary factor why ‘Made in India’ has such a high demand on foreign shores.
And let’s not rule out millions of homesick migrants living abroad who depend largely on such online stores to get their traditional fix and feel connected to their motherland. The demand hikes particularly during special occasions such as Indian weddings or festivals. This is where online International shopping sites such as eBay, Amazon, Etsy come in the picture, that offer the convenience of shipping products globally. Such portals provide platform to Indian sellers and allow them to serve global consumers.
Other Indian Ecommerce sites promoting Desi in Videsh
While Etsy and others are International players, there are Indian E-commerce sites that help people to cross borders virtually and sell their wares.
Indianroots, an online retail site that made a record sort of, courtesy a single order worth Rs.19 lakhs, solely focuses on the global market. In an interview to YourStory.com, Rahul Narvekar, CEO & Co-founder said, “With Indianroots, we pitch ‘Indian sensibility products’ for the global Indian.… After achieving significant scale in the international market, we will focus on the domestic market.” An NDTV venture, Indianroots aims at bridging the gap between Indian handicraft manufacturers/designers and global consumers. And the fact that they managed to breakeven within 8 months is a proof enough that they were successful in doing just that! Right from Chanderi Cotton to Khadi Silk, from acclaimed designer, Sabyasachi to House of Wandering Silk, a social enterprise, they have it all under one roof.
Jaypore is another such Indian E-commerce site that is responsible for helping desi artwork cross 7 oceans and make its presence felt. The Delhi based start-up that was launched in 2012, collaborates with craftsmen & independent designers to create an ensemble of India’s best products and sell it online. Craftsvilla features in the list too as an online venture that offers a platform to artisans, designers and vendors involved with Indian handicrafts and ships globally.
Independent Indian Brands Gone Global
Many Indian brands are working independently without exclusively relying on marketplaces and have managed to carve a niche for themselves globally. Take for instance Fab India and The Bombay Store that celebrates India through their offerings and have taken traditional art to the worldwide market. Both the brands have brick-and-mortar stores but they also sell internationally through their online shopping sites and have managed to reach countries like UK, USA, UAE, Germany, Canada, Australia, Singapore and China.
How does it work?
The basic structure for selling abroad via International portals is similar to selling in the domestic market. That is, registering your brand, filling information, listing products for a minimal fee on sites namely Amazon, eBay & Etsy and setting up shipping & delivery options. What changes is the tax amount, margin on sales and shipping cost.
The tax levied differs from country to country so does the shipping costs involved. As sellers, you got to make the choice between putting the tax burden completely on buyers, sharing with buyers or owing it entirely. VAT, Custom Duty, Local Taxes, and Import Duties are some of the costs involved with shipping internationally.
The vital elements required during the setting up process is VAT number, TIN number and a Paypal account to make/receive payments (in case of absence of accepted Credit Cards in some cases). Tying up with a trusted delivery partner is essential so is hiring someone to handle accounts who can guide you through various tax structures, legalities and formalities related to exports.
Just to give you a ballpark figure: To deliver a 5 kg shipment from India to New York in 3-4 days via FedEx, it will cost you approximately $290 – INR 18000 (apprx.), that includes Base Rate, Fuel Surcharge and India Service Tax. The price may vary based on definite weight, size, currency conversion rate and other factors.
As for Indianroots, designers & artists can get in touch with them with a business proposal and catalogue. And to sell on Craftsvilla, you need to complete VillaPay Seller Registration process on their website. On both the sites, taxes and courier related expenses are to be borne by the end user, barring exemption of shipping costs if the order exceeds an ‘x’ amount.
Make or Break
Achieving success in an unfamiliar and highly competitive global market largely depends on the quality of your products, differentiating factor and investment support received by host site. This is why luxury and premium goods with good financial backing do well. The high miscellaneous costs involved besides manufacturing shoots up the selling price. Agreed consumers are ready to pay high price provided they get value for money. But until enough buyers are generated, money needs to pumped constantly to sustain such host shopping sites that ultimately benefits sellers involved.
For example, Indianroots is doing extremely well compared to Craftsvillas with the support of NDTV. Hence sellers of Indianroots are enjoying better exposure. Whereas Aporv, a Bangalore based marketplace for Indian handicrafts closed their shutters last year due to lack of funds & response, in spite of showing potential when it was launched.
As for marketplaces eBay and Etsy, they are far more affordable, convenient and less risky for start-ups and independent artists. All you need to do to sustain is churn out unique quality products that stand out from rest. Because, on platforms like Etsy, positive customer reviews and word-mouth promotion does wonders.
Status of Indian Handicraft Exports and Future
The demand we are talking about is not hyped or artificially created. Reports of Indian Handicrafts Industry and Exports of India Brand Equity Foundation support this fact. Countries like Italy, USA, Germany, France, UK, UAE, LAC, Netherlands, Canada and Australia are huge market for Indian Handicrafts. The report published in IBEF, which is an initiative of Ministry of Commerce & Industry, Government of India states that goods such as ‘art metal ware, wood ware, hand printed textiles and scarves, embroidered and crocheted goods, shawls, zari and zari goods, imitation jewellery and miscellaneous handicrafts such as lace, toys’ generate maximum demand and revenue.
The Indian government indentifies the potential of Indian handicrafts and also the role of E-Commerce in aiding it. The Export Promotion Council of Handicrafts hosts and promotes various trade fairs, awareness seminars and training programs. Only last year in November, the body held ‘E-Commerce Led Export – Challenges & Opportunities’ in New Delhi.
For the very same reason, more and more artists are pitching their traditionally rooted work to global consumers using ecommerce model. It is great news for all those in sync with our rich handicrafts and knows how to infuse creativity to make it more contemporary, edgy and high-fashion. Because clearly it doesn’t look like the demand for ‘Made in India’ is going to die soon.
The post Desi brands go International with Etsy and More appeared first on IndianOnlineSeller.com.